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Smart Cities now and the Next WaveBy Richard Sear: Partner & SVP
June 2018
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What Defines a Smart City?
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What are Smart Cities?
Smart cities are integrating information
and communication technology into
multiple facets of urban life.
Source: Frost & Sullivan
Percentage of Respondents Indicating Organizational Activity in a Listed Smart
City Concept, Global, 2016
Smart Governance and
Education24%
21% 41%
27%
59%55%
56% 56%
Smart Citizens
Smart Energy
Smart Technology
Smart Healthcare
Smart Buildings
Smart Mobility
Smart Infrastructure
Sm
art
Cit
y C
on
cep
ts
2016 2020 2025
2.461 T
1.564 T
921 B
Smart City Market, Global, 2016–2025
4
2050
2025
2000
66.4%
46.6%58.2%
Percentage of Urban Population, Global,
2000, 2050, and 2025
$21.45 T
$36.17 T
$78.00 T
2000 2015 2030
Smart City Roadmapping: Contribution
of Top 123 Cities to Global GDP, Global,
2000, 2015, 2030
What Factors are Driving the Smart City Mega Trend?
$29.04 T
$90.8 T
$24.86 T
$76.3 T
($4.18 T)
($14.50 T)
Need Spending Gap
2017–2025 2017–2040
Smart City Roadmapping:
Infrastructure Need Versus Spending,
Global, 2017–2040
Rising Urbanization Increasing Urban Wealth Growing Infrastructure Needs1 2 3Source: Frost & Sullivan
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Smart City Concepts:
Example Smart City Technologies*
Smart Energy: Digital
Management Of Energy
Smart Technology*:
Seamless Connectivity
Smart Healthcare: Intelligent
Healthcare Technology
Smart Buildings: Automated
Intelligent Buildings
Smart Infrastructure: Digital
Management Of Infrastructure
Smart Citizen*: Civic
Digital Natives
Smart Mobility:
Intelligent Mobility
Smart Governance And Smart
Education: Government-on-
the-go
Smart Security: Next
Generation 911
• Smart grids
• Smart meters
• Intelligent energy storage
• Building automation
• Intelligent buildings: advanced HVAC, lighting equipment
• Advanced traffic management system (ATMS)
• Parking management
• ITS-enabled transportation pricing system
• 4G connectivity (with 5G technology approaching)
• Super broadband
• Free WiFi networks
• Sensor networks
• Digital water and waste management
• eGovernment
• eEducation
• Disaster management solutions
• Use of eHealth and mHealthsystems
• Intelligent and connected medical devices
• Use of green mobility options
• Smart lifestyle choices
• Volunteer engagement platforms
• Surveillance
• Biometrics
• Simulation modeling and crime protection
• C2 and response
Smart city goals include
1) Creating long-term
economic
sustainability
2) Providing a high
quality of life for
citizens
3) Ensuring safety,
resource security,
and environmental
sustainability
Solutions range from
highly complex and
large in scale, such as
smart grids, to digital-
first solutions such as
citizen engagement
platforms.
*List is not exhaustive. Source: Frost & Sullivan
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Smart City Participants and Typical Suite of Solutions
(Examples)*
• Enterprise resource
planning for municipalities
and governments
• Central operations centers
• Smart city consulting—
reference architecture and
framework planning
• Big data smart city
analytics
• Cloud-based smart city
services
Integrators
Software Focused
• Networking equipment,
such as routers, switches,
SIM chips
• Geographical information
systems
• Remote access and
monitoring
• Wireless area network
• M2M big data analytics
and consulting
• Unified communication
Network Service Providers
Communication Focused
• Smart devices and control
systems
• Sensors
• Smart meters
• Power and automation
technologies
• Turnkey substations
• Utility hardware and
software
• Smart parking
infrastructure
• Mobility integration and
parking infrastructure
Pure-Play Product Vendors
Infrastructure Focused
• Monitoring and
management of smart-city-
related IT infrastructure
• Prevention, detection, and
reporting of security
threats
• Feature solutions for
premises, cloud, and
hybrid environments
• Support in-house, co-
managed, and outsourced
options
• Manage risk and
compliance
Managed Service
Providers
Operations Focused
*The list is not exhaustive. Source: Frost & Sullivan
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Size of bubble has been estimated based on number of client engagements,
degree of partnership in smart city projects and level of investment in smart products and solutions
Sm
all
num
ber
of S
ma
rt C
ity p
roje
cts
L
arg
e n
um
ber
of S
ma
rt C
ity P
roje
cts
Data Networking Intelligence Integration
IBM
Cisco
Siemens
GEABB
Accenture
Degree of Smart Services
Sm
art
Cit
y C
lie
nt
En
ga
ge
me
nt
OracleEricsson
Schneider
Electric
Game Changers in the Smart City Business
IBM Leads the way with
integrated solutions,
combining state-of-the-
art hardware, software,
and services.
In addition, the
ecosystem has been
rapidly expanding,
including
electronics and
telecommunications
companies, such as
Panasonic, Hitachi,
AT&T, and Verizon.
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Future of Connectivity in Smart Cities
2015
2025
2020
Cloud services
and software
components
Smart systems
based
on Internet of
Things
Future Internet
platforms and
services
City-based cloud system
Open and federated
content platforms
Cloud-based fully
connected city
Smart power
management
portable systems
Smart systems
enabling integrated
solutions e.g., health
and care
Software agents and
advanced sensor
fusion
Fully networked and
context-aware mobile-
enabled infrastructure of
sensors and connectivity
Living-lab approach to
be a balanced mix of
technological and social
innovation
Digitally connected city
with citywide wireless
Internet, fully networked
parking, self-driven cars.
Source: Cisco.com; ibm.com; Alcatel-Lucent.com; Frost & Sullivan
Future of Connected Digital Services, Global, 2015, 2020, 2025
City-based cloud
system, fully digitally
connected city, and
fully networked and
context-aware
mobile-enabled
infrastructure will
bring new waves in
connectivity in the
future.
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Smart City Maturity and the era of Sentient Cities
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Smart City Maturity
Model
GOVERANCE INVESTMENT
MODELDATA IoT and PLATFORM BUSINESS MODEL
SYNERGIZED
Public-private Smart
City alliance drives
long-term
transformation
Long-term
investment in Smart
City ecosystem from
a variety of public
and private
stakeholders
Full data integration
through a virtual city
twin, allowing for
holistic simulation
and what if scenarios
Citywide IoT
deployment, with full
horizontal integration
of IoT solutions
Value add realized,
such as through
international
recognition or
quantified economic
impact
ALIGNED
Dedicated Smart City
department in local
government aligns
efforts
Sustained funding
from multiple sources
to support Smart City
vision or strategy
Optimization of
process through data
analytics
Smart City IoT
piloting
Initiatives have
achieved revenue
generation
SUPPORTED
Smart City strategy
supported by mayoral
and local government
efforts
Sustained local
budget to support
Smart City vision
and/or strategy
Better assimilation of
data through real-
time applications and
dashboards
Citywide connectivity
network to support
future IoT rollout
Citywide efficiencies
are being realized
DEFINEDSmart City vision
present
Multiple funding
sources for one-off
project
Presence of open
data with API
Integration of assets
in vertical systems
(energy,
environment,
transport, water
management)
Initiatives focus on
piloting projects to
determine ROI
AD HOCIndividual initiatives
underway, but no
overarching plan
Local funding for
one-off or sporadic
projects
Systems in place for
data capture
Siloed domains with
potential for vertical
integration using
ICTs
Initiatives lack
discernable ROI and
beneficiaries
1 52 3 4
AD HOC
SMART CITY
DEFINED
SMART CITY
SUPPORTED
SMART CITY
ALIGNED
SMART CITY
SYNERGIZED
SMART CITY
Smart City Maturity Model
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Q. Please rank the top 3 to 5 greatest challenges for your organization when securing/fulfilling a Smart City project engagement.
6%
9%
9%
9%
10%
10%
14%
15%
18%Gaining consensus/buy-in from diverse stakeholders (various
government/city agencies, citizens, local partners)
Clearly expressing the solution’s ROI or total value for the
relevant city
Moving from the piloting phase to a larger scale rollout
Aiding in the development of compelling financing and
operating models
Building a solution provider consortium or using common
platforms/systems
Developing end-to-end or holistic solutions, emphasizing
synergized value
Setting realistic customer expectations (for instance,
regarding project time frames or funding lengths)
Creating and conveying tailored solutions (addressing the
unique complexity, challenges, and infrastructure of each
city)
Identifying receptive and complementary partner cities
En
gag
em
en
t
Ch
allen
ges
*Percentages indicate the ratio of points
assigned through weighted rankings of listed
responses to the aggregate of possible points
Source: Frost & Sullivan
Smart City Engagement Challenges
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*Additional responses “Expressed fear of vendor lock-in or installation of
proprietary systems” and “Citizen concerns related to new technology
integration” received approximately 1.9% and 1.6%, respectively.
Percentages indicate the ratio of points assigned through weighted
rankings of listed responses to the aggregate of possible points
Q. From a vendor’s perspective, please rank the top 3 to 5 greatest restraints keeping cities from
adopting/successfully rolling out Smart City technologies.
Pro
ject
Restr
ain
ts
3%
5%
5%
6%
6%
7%
11%
11%
12%
13%
16%Securing adequate funding
Lacking a cohesive Smart City vision or municipal
strategy
Cost concerns: preference for less expensive or short-term
incremental solutions
Unsure ROI (solution viewed as a nice to have, not a need to
have)
Inability to coordinate efforts across siloed city agencies
Inability/lack of know-how to prioritize Smart City
projects/initiatives based on importance
Technological maturity/solution reliability concerns
Lack of mayoral support/motivation for smart project
implementation
Cybersecurity or privacy concerns
Elected official term lengths preventing long-term
commitments
Perceived misalignment between Smart City solutions and specific
needs of each community/city
Smart City Project Restraints
Source: Frost & Sullivan
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Kansas City
Chicago
Portland
Columbus
Bellevue
Washington DC
New York City
Austin
Schenectady
Atlanta
Dallas
Miami
Montgomery
Chapel Hill
San Leandro
Baltimore
Boston
Detroit
Denver
Boulder
Houston
Jacksonville
Los AngelesSan Diego
San Francisco
Orlando
Madison
Memphis
Minneapolis
St. Paul
Santa Fe
NashvilleCharlotte
Raleigh
Seattle
Providence
Pittsburgh
Newark
Burlington
South Bend
San Antonio
Wichita
Jackson
Greensboro
Birmingham
Milwaukee
Chula Vista
Spokane
GreenvilleChattanooga
Cambridge
ATT Smart Cities Framework
MetroLab
NIST* SuperClusters
Envision
*NIST is National Institute of Standards and Technology; Source: AT&T; NIST; MetroLab; Envision America; Frost & Sullivan
The Smart City
movement in the US
has been rapidly
expanding, with a
number of Smart City-
oriented networks
arising to pilot
technologies and
solutions, and cross-
pollinate best
practices.
Tier II Cities are Driving the Current Smart City Wave in the
US
Cities in Smart City Networks, US, 2018
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Governance Maturity—A Coordinated, Multi-Stakeholder Effort
(Often Leveraging Technology to Secure Interest and Input)
Vote on
Projects
Track
Projects
Gain Project
Details
Participatory Budget Overview, Paris, 2014–2020
• Paris has dedicated 5% of its
capital investment budget from
2014 to 2020, or a total of €500
million, to citizen projects.
• Parisians submit ideas and vote
online.
• Ideas can fall into one of 12
categories, including a category
specifically devoted to digital city
initiatives.
• Ideas need to satisfy a general
interest, concern areas within the
city’s jurisdiction, represent more of
a capital (rather than operational)
investment, and be technically
feasible.
• Once filtered, ideas receiving
enough votes are implemented,
with the progress posted online.
• Parisians can view details on the
projects being implemented,
including the project’s location, its
budget, and timeline of
completion.
• In 2015, more than 5,000 ideas
were submitted, with 8 Parisian
projects and 180 neighborhood
projects selected for
implementation.
Image Source: Paris Budget Participatif
Source: Paris Budget Participatif; Frost & Sullivan
As part of the Smart
and Sustainable
Strategy, 5% of
Paris’s capital
investment budget is
being dedicated to
citizen projects
submitted and voted
on through an online
portal, ensuring
citizen interest in the
Smart City.
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Cisco three-year program to
accelerate Germany’s digitization
strategy, Deutschland Digital,
promises to invest €500 million to
support a range of projects.
Costs for Panasonic’s Fujisawa
Sustainable Smart Town project totaled
¥60 billion, although estimates for the
Aldershof project have not been released.
IoT technologies Panasonic is
considering integrating smart
refrigerators and health monitors in
the apartments.
Opened in 2009, IBM’s Analytics Solution
Center in Berlin focuses on meeting the
increasing demand for analytics in the public
sector, universities, and healthcare
organizations.
Additional support from IBM has been
shown through $120,000 worth of free
cloud credits for qualified local start-ups.
Cisco’s investments in
Berlin include 1 of 9
global innovation
centers.
Cisco’s openBerlin provides an open digital platform
that partners can use to help develop and monetize
digital innovations. The center operates as a gateway
to global markets for Berlin and other German
companies.
Smart City-related Mega Investments, Berlin
Panasonic has committed to
developing a Smart City community in
the Adlershof district of Berlin. Plans
include 67 environmentally friendly,
renewable-energy supplied, and
IoT-integrated apartments.
IBM has located 1 of 8 global
Analytics Solution Centers in Berlin.
Further partnerships include
techberlin.com, an online hub for
Berlin entrepreneurs developed in
collaboration with the City of Berlin.
Image Source: Cisco; Panasonic; IBM Source: Berlin Partner for Business and Technology; Financial Times; Wired; Cisco; IBM; Frost & Sullivan
Berlin has attracted
investments from
major technology
giants, which has, in
turn, led to the
support of
the local
entrepreneurial and
start-up communities.
Investment Maturity—Attracting both Public and Private
Investments in Smart City Initiatives and the Local Economy
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Data Maturity—Full Data Integration Throughout the City, with Access to
Relevant Data for Public, Private, and Citizen Innovation
Attributes
• Includes semantic modeling, so that users can discern a building’s
geographic footprint, its volume, and material composition
• Provides details regarding terrain, vegetation, infrastructure, transit
connections, and traffic and weather conditions (among others)
Data Sources
• Represents a five-year effort assimilating geometric and image
data across public agencies, while integrating 2D data and
information from both geospatial and non-geospatial sources
• Leverages modeling technology to support static, dynamic, and
real-time data uploads
Use Cases
• Creates a virtual test bed and experimentation environment, allowing for
planning and decision making without disrupting the real world (e.g.,
analyzing a building’s solar energy potential given its surrounding built
environment)
• Allows for if-then scenario testing, such as for disaster control or public
safety applications
• Helps citizens plan routes, track lost pets, and keep tabs of children and
the elderly
Image Source: National Research Foundation Singapore Source: National Research Foundation Singapore; Frost & Sullivan
Building on 3D
topographical
mapping data,
Singapore’s $73
million Virtual
Singapore Project
provides a
collaborative,
dynamic data
platform for public,
private, research, and
citizen use.
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Image Source: Capital New York; NYC Analytics Presentation; NYC MODA
Supporting operationsFacilitating cross-
agency data-sharing
Promoting economic
development
Aid in disaster
response and
recovery
Improving open data
The MODA has helped the city’s fire
department establish a risk-based
inspection system and more accurate risk
map by re-weighing inspection criteria to
match characteristics of buildings that have
had major fires.
Original
Map
Historical
Map
Updated
Model
To protect tenants in rent-stabilized
apartments against landlord harassment, the
MODA created a Timeline of Harassment by
aggregating data and determining the driving
factors of unit loss. Correlations in data have
helped mitigate harassment.
The Mayor’s Office of Data Analytics
(MODA) designed a multi-modal system to
help the agency in charge of affordable
housing find buildings at the risk of
becoming highly distressed. 500 buildings
not being monitored were identified for
proactive inspection measures.
Housing Violations Heat Map Rent Stabilized Unit Loss Data Map
Data Initiatives Examples
Overview of MODA, New York City, 2017
Source: MODA; NYC Analytics Presentation; Frost & Sullivan
New York City has
established a
dedicated data
analytics team, the
MODA, to aggregate
data across
government agencies
and find data-driven
solutions to city
challenges.
Data Maturity—Integrated Data Across Government Agencies for More
Accurate Assessments of City Scenarios and Better Resource Response
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Data-driven
decisions
Congestion
Utility efficiencyPublic safety
Emissions
CitizensPublic
Sector
Private
Sector
Academia
>$1.0MIn funding from the
National Science
foundation and its
partners
Boston, Boston University, and the private sector install a network
of sensors, collecting citywide data…
Boston’s SCOPE Project Embodies the Connected City
Boston Metro 2025:
• Population, 5.3 M
• GDP, $1.18T
The multi-faceted open cloud operates as an online marketplace,
connecting citizens, public agencies, solutions, and vendors in
one democratized ecosystem.
MOC technology, and multiple cloud and IT vendors provide
SCOPE’s underlying infrastructure.
Platform Technology Enabling Technology
MOC—Massachusetts Open Cloud
Academia
Data services
Cloud
vendorsCloud
operators
Data centersIT vendors
Boston’s City-as-a-Customer Design, US, 2015
…which app and solution providers use to enhance quality of
life and improve public agencies.
SCOPE—A Smart-city Cloud-based Open Platform
and Ecosystem
Smart City Services System
Assets,
utilities
Public
agenciesApps,
solutions
Providers
Citizens
Note: All figures are rounded. Source: Boston University; Census.gov; UN ESA; Frost & Sullivan
1 2
4 3
Image source: Flickr/Wally
Gobetz/Creative Commons
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Kalasatama’s Smart Development and Agile Piloting Timeline, Helsinki, 2013–2035
IoT Maturity—IoT-Based Living Labs are Popping up in Cities Globally,
Offering Forums for Testing and Vetting Next-Gen Solutions
2013: City council decides to make Kalasatama a model
district for Smart City deployments.
2035: Kalasatama houses 25,000 residents and provides
workspace for 10,000.
2016: Kalasatama houses 3,000 residents.
Spring 2016:
Foller: Use of RFID tags to enable
automated real-time inventory,
pricing, and marketing of expiring food
Nifty Neighbor: System for localized
crowdfunding
Tuup: Aggregation of payment for
multi-modal mobility services from
public and private vendors
Smart Trash Bins: Investigation
seeking insights from data collected
through smart trash bins
Autumn 2016:
KuntoKaverit: mCoach Solution:
Connecting trainers and trainees to
enhance fitness
Auntie Solutions: Connecting those
experiencing mental health crisis with
professionals via video chat
Rounds of Agile Innovation
Spring 2017:
Witrafi: Smart parking app to book
spaces in advance
Parkkisahko: Upgrade of car block
heaters to EV charges controlled by
smartphones
Elwedo: Excess solar power from
buildings fed to grid, while proceeds
are distributed to building residents
Innogreen: Installation of green walls
for storm water control
The Natural Step Helsinki:
Combination of real-time carbon
footprint data with sharing economy
opportunities
Kalasatama’s agile innovation program provides €1,000–8,000 in funding to pilots, which runs for up to 6 months. Real-life
testing allows solutions to accelerate full-scale launch, while improving upon design and delivery.
Degree of
IoT focusHigh Medium Low
Source: Smart Kalasatama; Frost & Sullivan
As part of the
bIoTope project,
Helsinki’s Smart
Kalasatama district
will serve as an agile
innovation platform
for IoT solutions; its
goal is to save
residents at least an
hour per day through
increased
efficiencies.
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Making Smart Cities Tangible for You
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2015 2020 2025
Innovators Early adopters Early majority Late majority
• Boston
• Chicago
• Los Angeles
• New York
• San Diego
• San Francisco
• Seattle
• Atlanta*
• Baltimore
• Columbus*
• Dallas
• Denver
• Houston
• Kansas City*
• Las Vegas*
• Miami*
• Minneapolis
• Portland*
• Richmond*
• San Jose*
• Washington DC
• Albany
• Albuquerque
• Austin
• Bakersfield
• Baton Rouge
• Bridgeport
• Buffalo
• Cincinnati*
• Charlotte
• Columbia
• Des Moines
• Detroit
• Durham
• Harrisburg
• Hartford
• Akron
• Allentown
• Birmingham
• Cleveland
• Dayton
• El Paso
• Fresno
• Grand Rapids
• Greensboro
• Greenville
• Jacksonville
• Knoxville
• Little Rock
• Milwaukee
• New Orleans
• Oklahoma City
• Omaha
• Oxnard
• Providence
• Springfield
• Tucson
• Tulsa
• Virginia Beach-
Norfolk
• Worcester
Innovators
Early adopters
Early majority
Late majority
Smart City Roadmap—Which Smart Cities are Evolving in The
United States to Sentient Cities?
• Honolulu
• Indianapolis*
• Louisville*
• Madison
• Memphis*
• Nashville
• New Haven
• Orlando
• Philadelphia
• Phoenix
• Pittsburgh
• Raleigh
• Riverside
• Rochester
• Sacramento
• Salt Lake City
• San Antonio
• St. Louis
• Syracuse
• Tampa
2016 2018
Lagging adopters
2017
Estimated timeframe for
Initial development
Estimated timeframe for
continued implementation
2019 2021 2022
*Denotes city that has been moved to a category with an earlier timeframe for adoption than approximated by model. Note: Timeline bars represent approximate timeframe for
prioritizing of smart city solution adoption. Lagging adopters are not included in scope. Source: Frost & Sullivan
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The initial hype surrounding smart cities is transitioning into wider adoption of
strategic and integrated smart city planning.
Smart city initiatives were once concentrated in global and mega cities. However, the
greatest opportunities are now in smaller Tier II cities, which face pressing
urbanization challenges but have only recently begun to embrace smart city
solutions.
Smart cities are a “when” not “if” opportunity. As legacy infrastructure is upgraded
and replaced, smart solutions will become the technological norm.
Source: Frost & Sullivan
The Last Word: 3 Key Takeaways
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2
3
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Thank You!
Richard SearPartner & Senior Vice PresidentFrost & Sullivan
+1-210-849-3944